In the context of the global market facing pressure from the new tariff policies of U.S. President Donald Trump, many investors feel bewildered by the volatile trading sessions. However, according to the message from Vanguard – one of the largest asset management organizations in the world – this is not the time to panic, but a time to uphold a long-term investment strategy.
"The market has experienced many major shocks – from financial crises, global pandemics, to trade wars – but history shows it always has the ability to recover impressively in the long term," #Vanguard emphasizes in its latest report to investors.
Trust based on historical data
Vanguard cites data showing that after each major crisis, the stock market often not only recovers but also exceeds previous growth levels within a few years. This is bolstered by the strength of the global economy, the resilience of businesses, and the flow of long-term investment capital.
For example:
After the financial crisis of 2008, the index #S&P500 increased by more than 300% in a decade.
During the COVID-19 pandemic in 2020, after a sharp decline, the market recovered in just a few months and continued to set new highs.
Long-term investing – the compass in the storm
According to Vanguard, instead of trying to "catch the bottom" or "sell off", investors should:
Stay committed to a portfolio built on long-term goals
Diversify assets to reduce short-term risks
Avoid emotional reactions to the market's immediate fluctuations
Vanguard believes that the current fluctuations caused by tariffs, while significant, are just a small part of the long-term investment picture. Those who maintain financial discipline will be the winners when the market stabilizes.
Conclusion:
Amidst the turbulence of the global financial market due to tariff policies, the message from Vanguard offers a positive and realistic perspective. History has shown: the market can be shaken, but trust and long-term strategy will always be the compass guiding investors to the shores of success.
